By Paul Effiong, Abuja
House of Representatives has called on the Central Bank of Nigeria, CBN, to suspend the implementation of the increase in Automated Teller Machine, ATM, withdrawal charges pending proper engagement with relevant committees of the House.
This followed a motion of urgent public importance moved during Tuesday’s plenary by Marcus Onobun.
In his lead defence, Onobun stated that he was standing on Order 8 Rule 5 of the House for his motion.
The lawmaker explained that he is aware of the CBN’s new circular which has reviewed upward, the ATM transaction fees as stipulated under Section 10.7 of the CBN Guide to Charges by Banks and other Financial Institutions, as well as Non-Bank Financial Institutions in the country.
Onobun lamented that CBN in its new circular had increased the ATM withdrawal charges and discontinued the free ATM withdrawals for customers using other bank ATMs, adding that such policy has imposed additional financial burden on Nigerians.
He maintained that he is fully aware that the said Section 10.7 of the CBN Guide was last reviewed in 2019, leading to a reduction of ATM transaction fees from N65 to N35 per each transaction.
According to him, “Under this new policy, customers withdrawing from their bank ATMs will continue to enjoy free withdrawals, while a fee of N100 per N20,000 withdrawals will be applied to customers from other banks transacting from ATMs within the bank premises.”
He informed that customers from other banks transacting from ATMs outside the premises of the bank which includes places like, malls, market places and other public areas will be charged N100 and an additional surcharge of N500 per transaction.
The lawmaker equally expressed shock that many citizens are already grappling with multiple economic hardship, including high inflation, increased fuel price, electricity tariff hike and numerous banking and service charges that significantly reduce disposable income and negatively impact their economic welfare.
“We are cognisant of the fact that the banking sector has continued to record significant profits, imposing further charges on consumers without corresponding improvements in service delivery or infrastructure, this is unjustifiable,” he said.
Lawmakers who contributed to the motion agreed that the role of government includes protecting citizens from exploitative financial practices that may lead to further economic distress.
